IFSA members quick to adopt PDS model
TheInvestment and Financial Services Association(IFSA) says a large number of its main members have taken up its model product disclosure statements (PDS) less than a month after its rollout.
Seven IFSA members includingColonial First State, Westpac/BT Financial Group,Perpetual,Australian Skandia,MLCandBridgesare already using the PDS forms.
The model statements incorporate theAustralian Securities and Investments Commission(ASIC) fee table and are available for both managed investment and superannuation products.
IFSA chief executive Richard Gilbert says the take up rate has been impressive over the last month considering some funds management and superannuation providers have had to redesign products to suit the new disclosure model.
“It has not been palatable for all groups but it is an industry standard for them all. Some had to consider the effect this model would have on product differentiation in the market but the end benefit of disclosure is very good for consumers, and that is something which is very much needed at present,” Gilbert says.
IFSA model disclosure statements, available from the association’s website, include the ASIC fee table which was developed by IFSA,ASFA, ASIC and based on recommendations by Professor Ian Ramsay who conducted a wide ranging survey into industry disclosure.
Despite IFSA members being committed to offer the disclosure model by March 11 2004, at which time it will become a mandatory IFSA member standard, Gilbert says the uptake indicates members are willing to adopt it as part of doing business now.
“The driver behind this rapid uptake is that this is an independent tool, created with the regulator and it sets a uniform standard for everyone,” Gilbert says.
"The fee template has meant the adoption of standardised terminology and standard fee tables, which are designed to facilitate comparison of products, with more transparency for consumers.”
Gilbert also says the rapid uptake was due to the fact there was high levels of consultation and members were satisfied with the final outcome.
IFSA first released the model disclosure statements in late September.
AUTHOR
Jason Spits
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